Date of Report (Date of earliest event reported)
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November 2, 2015
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LOEWS CORPORATION
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Delaware
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1-6541
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13-2646102
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(State or other jurisdiction
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(Commission
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(I.R.S. Employer
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of incorporation)
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File Number)
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Identification No.)
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667 Madison Avenue, New York, N.Y.
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10065-8087
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(Address of principal executive offices)
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(Zip Code)
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Registrant’s telephone number, including area code:
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(212) 521-2000
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NOT APPLICABLE
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(Former name or former address, if changed since last report.)
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[ ]
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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[ ]
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[ ]
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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[ ]
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Pre-commencement communications pursuant to rule 13e-4 (c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02
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Results of Operations and Financial Condition.
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Item 9.01
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Financial Statements and Exhibits.
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(a)
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Not applicable.
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(b)
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Not applicable.
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(c)
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Exhibit:
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Exhibit Reference
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Number
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Exhibit Description
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99.1
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Loews Corporation press release, issued November 2, 2015, providing information on its results of operations for the third quarter of 2015.
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LOEWS CORPORATION
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(Registrant)
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Dated: November 2, 2015
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By:
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/s/ Gary W. Garson
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Gary W. Garson
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Senior Vice President
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General Counsel
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and Secretary
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![]() |
Contact:
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Mary Skafidas
Investor and Public Relations
(212) 521-2788
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September 30,
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Three Months
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Nine Months
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(In millions, except per share data)
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2015
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2014
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2015
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2014
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Income before net investment gains (losses)
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$ | 211 | $ | 155 | $ | 479 | $ | 708 | ||||||||
Net investment gains (losses)
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(29 | ) | 24 | (18 | ) | 39 | ||||||||||
Income from continuing operations
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182 | 179 | 461 | 747 | ||||||||||||
Discontinued operations, net
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- | 29 | - | (364 | ) | |||||||||||
Net income attributable to Loews Corporation
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$ | 182 | $ | 208 | $ | 461 | $ | 383 | ||||||||
Net income per share:
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Income from continuing operations
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$ | 0.50 | $ | 0.47 | $ | 1.25 | $ | 1.94 | ||||||||
Discontinued operations, net
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- | 0.08 | - | (0.94 | ) | |||||||||||
Net income per share
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$ | 0.50 | $ | 0.55 | $ | 1.25 | $ | 1.00 |
September 30,
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Year Ended
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2015
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2014
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December 31, 2014
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Book value per share
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$ | 52.52 | $ | 52.01 | $ | 51.70 | ||||||
Book value per share excluding AOCI
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52.59 | 50.32 | 50.95 |
September 30,
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(In millions)
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Three Months
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Nine Months
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2015
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2014
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2015
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2014
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Revenues:
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CNA Financial
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$ | 2,203 | $ | 2,374 | $ | 6,874 | $ | 7,249 | ||||||||
Diamond Offshore
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608 | 737 | 1,867 | 2,148 | ||||||||||||
Boardwalk Pipeline
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296 | 279 | 925 | 931 | ||||||||||||
Loews Hotels
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146 | 126 | 452 | 343 | ||||||||||||
Investment income (loss) and other
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(34 | ) | (30 | ) | 6 | 68 | ||||||||||
3,219 | 3,486 | 10,124 | 10,739 | |||||||||||||
Investment gains (losses) – CNA Financial
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(50 | ) | 37 | (42 | ) | 65 | ||||||||||
Total
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$ | 3,169 | $ | 3,523 | $ | 10,082 | $ | 10,804 | ||||||||
Income (Loss) Before Income Tax:
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CNA Financial (a)
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$ | 284 | $ | 258 | $ | 755 | $ | 896 | ||||||||
Diamond Offshore (b)
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139 | 82 | (42 | ) | 362 | |||||||||||
Boardwalk Pipeline (c)
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48 | 28 | 163 | 105 | ||||||||||||
Loews Hotels
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1 | - | 25 | 14 | ||||||||||||
Investment income (loss), net
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(35 | ) | (29 | ) | 4 | 68 | ||||||||||
Other (d)
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(39 | ) | (37 | ) | (115 | ) | (111 | ) | ||||||||
398 | 302 | 790 | 1,334 | |||||||||||||
Investment gains (losses) – CNA Financial
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(50 | ) | 37 | (42 | ) | 65 | ||||||||||
Total
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$ | 348 | $ | 339 | $ | 748 | $ | 1,399 | ||||||||
Net Income (Loss) Attributable to Loews Corporation:
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CNA Financial (a)
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$ | 190 | $ | 164 | $ | 513 | $ | 584 | ||||||||
Diamond Offshore (b)
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47 | 25 | (34 | ) | 136 | |||||||||||
Boardwalk Pipeline (c)
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18 | 8 | 55 | 7 | ||||||||||||
Loews Hotels
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2 | - | 15 | 8 | ||||||||||||
Investment income (loss), net
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(22 | ) | (18 | ) | 4 | 46 | ||||||||||
Other (d)
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(24 | ) | (24 | ) | (74 | ) | (73 | ) | ||||||||
211 | 155 | 479 | 708 | |||||||||||||
Investment gains (losses) – CNA Financial
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(29 | ) | 24 | (18 | ) | 39 | ||||||||||
Income from continuing operations
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182 | 179 | 461 | 747 | ||||||||||||
Discontinued operations, net (e)
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- | 29 | - | (364 | ) | |||||||||||
Net income attributable to Loews Corporation
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$ | 182 | $ | 208 | $ | 461 | $ | 383 |
(a)
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Includes a charge of $84 million ($49 million after tax and noncontrolling interests) for the nine months ended September 30, 2015 related to retroactive reinsurance accounting for the Loss Portfolio Transfer. Includes a loss of $31 million (after noncontrolling interests) related to a coinsurance agreement entered into on a separate small block of annuity business outside of Continental Assurance Company for the three and nine months ended September 30, 2014 and an $86 million curtailment gain ($50 million after tax and noncontrolling interests) related to a negative plan amendment and the re-measurement of postretirement benefit obligations at CNA for the nine months ended September 30, 2014.
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(b)
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Includes an asset impairment charge of $361 million ($159 million after tax and noncontrolling interests) for the nine months ended September 30, 2015 related to the carrying value of eight drilling rigs and an asset impairment charge of $109 million ($55 million after tax and noncontrolling interests) for the three and nine months ended September 30, 2014 related to the carrying value of six drilling rigs.
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(c)
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Includes a loss of $94 million ($55 million after tax and noncontrolling interests) for the nine months ended September 30, 2014 to write off all capitalized costs associated with the terminated Bluegrass project.
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(d)
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Consists primarily of corporate interest expense and other unallocated expenses.
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(e)
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See table on page six for a summary of items comprising discontinued operations for 2014.
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September 30,
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(In millions, except per share data)
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Three Months
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Nine Months
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2015
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2014
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2015
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2014
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Revenues:
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Insurance premiums
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$ | 1,751 | $ | 1,810 | $ | 5,173 | $ | 5,427 | ||||||||
Net investment income
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321 | 451 | 1,419 | 1,625 | ||||||||||||
Investment gains (losses)
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(50 | ) | 37 | (42 | ) | 65 | ||||||||||
Contract drilling revenues
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599 | 728 | 1,816 | 2,063 | ||||||||||||
Other
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548 | 497 | 1,716 | 1,624 | ||||||||||||
Total
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3,169 | 3,523 | 10,082 | 10,804 | ||||||||||||
Expenses:
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Insurance claims and policyholders’ benefits (a)
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1,200 | 1,354 | 4,008 | 4,241 | ||||||||||||
Contract drilling expenses
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276 | 400 | 971 | 1,165 | ||||||||||||
Other (b) (c) (d)
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1,345 | 1,430 | 4,355 | 3,999 | ||||||||||||
Total
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2,821 | 3,184 | 9,334 | 9,405 | ||||||||||||
Income before income tax
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348 | 339 | 748 | 1,399 | ||||||||||||
Income tax expense
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(66 | ) | (99 | ) | (170 | ) | (347 | ) | ||||||||
Income from continuing operations
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282 | 240 | 578 | 1,052 | ||||||||||||
Discontinued operations, net of income tax
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- | 29 | - | (384 | ) | |||||||||||
Net income
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282 | 269 | 578 | 668 | ||||||||||||
Amounts attributable to noncontrolling interests
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(100 | ) | (61 | ) | (117 | ) | (285 | ) | ||||||||
Net income attributable to Loews Corporation
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$ | 182 | $ | 208 | $ | 461 | $ | 383 | ||||||||
Net income attributable to Loews Corporation
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Income from continuing operations
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$ | 182 | $ | 179 | $ | 461 | $ | 747 | ||||||||
Discontinued operations, net (e)
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- | 29 | - | (364 | ) | |||||||||||
Net income
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$ | 182 | $ | 208 | $ | 461 | $ | 383 | ||||||||
Diluted income per share:
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Income from continuing operations
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$ | 0.50 | $ | 0.47 | $ | 1.25 | $ | 1.94 | ||||||||
Discontinued operations, net
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- | 0.08 | - | (0.94 | ) | |||||||||||
Diluted income per share attributable to Loews Corporation
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$ | 0.50 | $ | 0.55 | $ | 1.25 | $ | 1.00 | ||||||||
Weighted diluted number of shares
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361.10 | 381.19 | 368.03 | 385.19 |
(a)
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Includes a charge of $84 million ($49 million after tax and noncontrolling interests) for the nine months ended September 30, 2015 related to retroactive reinsurance accounting for the Loss Portfolio Transfer.
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(b)
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Includes a loss of $31 million (after noncontrolling interests) related to a coinsurance agreement entered into on a separate small block of annuity business outside of Continental Assurance Company for the three and nine months ended September 30, 2014 and an $86 million curtailment gain ($50 million after tax and noncontrolling interests) related to a negative plan amendment and the re-measurement of postretirement benefit obligations at CNA for the nine months ended September 30, 2014.
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(c)
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Includes an asset impairment charge of $361 million ($159 million after tax and noncontrolling interests) for the nine months ended September 30, 2015 related to the carrying value of eight drilling rigs and an asset impairment charge of $109 million ($55 million after tax and noncontrolling interests) for the three and nine months ended September 30, 2014 related to the carrying value of six drilling rigs.
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(d)
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Includes a loss of $94 million ($55 million after tax and noncontrolling interests) for the nine months ended September 30, 2014 to write off all capitalized costs associated with the terminated Bluegrass project.
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(e)
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See table on page six for a summary of items comprising discontinued operations for 2014.
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September 30, 2014
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(In millions)
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Three Months
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Nine Months
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CNA Financial
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Continental Assurance Company (“CAC”) operations
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$ | - | $ | 12 | ||||
Impairment loss on sale of CAC
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4 | (189 | ) | |||||
CNA Financial - Discontinued operations, net
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4 | (177 | ) | |||||
HighMount
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Operations
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(5 | ) | (31 | ) | ||||
Ceiling test impairment
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- | (19 | ) | |||||
Impairment loss on sale
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30 | (137 | ) | |||||
HighMount – Discontinued operations, net
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25 | (187 | ) | |||||
Discontinued operations, net
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$ | 29 | $ | (364 | ) |
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